In a significant move, the Pakistan government, led by Caretaker Prime Minister Anwaar ul Haq Kakar, has made the decision to outsource eight airports in a phased approach, as announced by Advisor to PM on Aviation, Farhat Hussain Shah, during a Senate session on Tuesday.

While the initial plan focused on outsourcing Islamabad, Lahore, and Karachi airports, the government has expanded its scope to include a total of eight airports in the outsourcing initiative. Advisor Shah emphasized that the outsourcing process will be carried out systematically, employing an open bidding system to ensure transparency and fair competition.

This decision has not been without its share of opposition, as the Aircraft Owners and Operators Association of Pakistan (PAOOA) voiced concerns about the government’s unilateral move. The association raised objections to the outsourcing decision, citing a lack of adherence to the Public Procurement Regulatory Authority (PPRA) rules.

The Economic Coordination Committee (ECC) had previously approved the draft Transaction Advisory Agreement in collaboration with the International Finance Corporation for the outsourcing of three airports. The ECC justified the move as part of the Public-Private Partnership Act-2017, aiming to engage private investors through a competitive and transparent process. The goal is to entrust private entities with the operation of airports, leverage land assets, enhance commercial activities, and maximize revenue potential.

As the government forges ahead with its phased outsourcing plan for airports, the move is expected to stimulate economic growth, improve airport facilities, and contribute to the overall development of the aviation sector in Pakistan. The outsourcing initiative aligns with global trends in privatizing airport operations, with a focus on efficiency, innovation, and sustainable development.